Importance of Quality and Need for Improvement

Perception towards quality has undergone a sea change. Now-a-days  the quality is not treated from product angle alone nor it is supposed to be the baby of quality control department rather it permeates in every thing that an organisation does. It applies to all types of organisations irrespective of their size, irrespective of their activities be it manufacturing, constructionist or catering service. Now-a-days quality has turned into the total experience of the customer with the organisational at all levels. Some of the major ways that quality affects 

an organisation are as follows : 

• Reputation and image of organisation 
• Liability 
• Productivity 
• Costs 

We are well familiar with the products/services rendered by Tata Group of Industries, watches by H.M.T., automobiles by Bajaj or toileteries by Godrej and Hindustan Lever. It is all due to quality of their products and its assurance. Reputation and image of an organisation is associated with quality and the cost of the goods/service that it offers. 

Liability of the organisations towards the damages or injuries due to poor quality products/services to the customer is the second issue. With the increasing awareness and role of consumer forums or courts, this issue is also very important. 

Next issue is that of productivity. Quality and productivity are often closely related to each other. According to the motto of Japanese companies "Quality is the easiest way to improve productivity", one can understand the importance of quality. For the survival of a company, quality backed-up with productivity is a must. 

Remember that it is the poor productivity and not the superior quality that makes product expensive. 

Poor quality increases costs incurred by the organisation. These include scrap and rework cost, warranty costs. replacement and repair costs after purchase. Cost of quality is a measure of cost to the firm for the lack of quality. It is very difficult to measure and often cannot be found in accounts books. But by overlooking tw underestimating, we cannot lower its importance. One must be very careful as most of the cost elements are hidden. 

Competitive pressure/complaints from the customer, professionalism and desire to increase sales all have a potential role it the need for improvement (Figure). 

 Driving Forces for Improvement 

The role of management is significant in coordinating the forces, shown in Figure, and the adoption of newer modem and cost effective management approach.